High Liner Foods

Has had a terrible time lately with product recall and CEO replacement. Still owns it. A beaten-up stock. If they get their act together, stock could rise sharply in a short time. Not for the weak of heart though.

Has had a terrible time lately with product recall and CEO replacement. Still owns it. A beaten-up stock. If they get their act together, stock could rise sharply in a short time. Not for the weak of heart though.

There are a lot of moving parts. They made a major acquisition and were immediately faced with a recall. So they brought back the former CEO. They have put the product questions behind them. But the market has really lost confidence in the company. They are quite inexpensive. The price can be volatile because of liquidity. He would hold it and see how the returning CEO changes things.

There are a lot of moving parts. They made a major acquisition and were immediately faced with a recall. So they brought back the former CEO. They have put the product questions behind them. But the market has really lost confidence in the company. They are quite inexpensive. The price can be volatile because of liquidity. He would hold it and see how the returning CEO changes things.

This company doesn’t fish, it buys seafood and puts value added things to it. They sell to restaurants as well as to consumers. Their big business is selling to restaurants and to hospitality. They feel there is a big opportunity, especially as minimum wage is going up significantly and restaurants are facing increasing labour costs. Since they already have products that are easy to cook and bake, restaurants don’t need fancy chefs, and that’s where they feel they have the value. The stock price has been absolutely terrible, and he thinks a lot of the impact is unwarranted. The CEO who ran the company from 1992 to 2015, is now back, and is thinking 12 quarters ahead, not just 2 quarters. The market is punishing the company for things that happened 2 quarters ago, which was a recall of some of its products. There is a serious opportunity here for long-term investors. Dividend yield of 4.2%.

This company doesn’t fish, it buys seafood and puts value added things to it. They sell to restaurants as well as to consumers. Their big business is selling to restaurants and to hospitality. They feel there is a big opportunity, especially as minimum wage is going up significantly and restaurants are facing increasing labour costs. Since they already have products that are easy to cook and bake, restaurants don’t need fancy chefs, and that’s where they feel they have the value. The stock price has been absolutely terrible, and he thinks a lot of the impact is unwarranted. The CEO who ran the company from 1992 to 2015, is now back, and is thinking 12 quarters ahead, not just 2 quarters. The market is punishing the company for things that happened 2 quarters ago, which was a recall of some of its products. There is a serious opportunity here for long-term investors. Dividend yield of 4.2%.

This has not been one of his great, shining picks in the last 2 years. He made a fortune on the stock in the early part of the decade. Unfortunately, they took part of it back. Poor execution on a recent acquisition of a shrimp company in south east Asia, and they had some product recalls that really hammered earnings. Their 4th quarter was better. He hasn’t given up on this yet.

This has not been one of his great, shining picks in the last 2 years. He made a fortune on the stock in the early part of the decade. Unfortunately, they took part of it back. Poor execution on a recent acquisition of a shrimp company in south east Asia, and they had some product recalls that really hammered earnings. Their 4th quarter was better. He hasn’t given up on this yet.

Long-term, it has a nice trend. There is quite a nice base in 2000-2011, and then we had a big break out in 2011. The fact that it has come back down so much, to him it would be too much of a volatile stock. The risk/reward is reasonable right here. If it broke much below $14, it is going to hit $10 pretty fast. The kind of name he would want to avoid for the next 6 months.

Long-term, it has a nice trend. There is quite a nice base in 2000-2011, and then we had a big break out in 2011. The fact that it has come back down so much, to him it would be too much of a volatile stock. The risk/reward is reasonable right here. If it broke much below $14, it is going to hit $10 pretty fast. The kind of name he would want to avoid for the next 6 months.

The chart has been ugly. In the last 2 quarters, they’ve been hurt by plant inefficiencies and a recall on a number of products. The good news is that the past president is back. He grew the company when it was a $100 million sales company to a billion-dollar sales company. If they get some of those issues right, you could see a meaningful upside in the company. Valuation is very cheap. There are rumours the company is interested in getting into canned fish as well, which would be a natural fit. Has a wonderful distribution network and a wonderful group of clients.

The chart has been ugly. In the last 2 quarters, they’ve been hurt by plant inefficiencies and a recall on a number of products. The good news is that the past president is back. He grew the company when it was a $100 million sales company to a billion-dollar sales company. If they get some of those issues right, you could see a meaningful upside in the company. Valuation is very cheap. There are rumours the company is interested in getting into canned fish as well, which would be a natural fit. Has a wonderful distribution network and a wonderful group of clients.

Has been suffering in the last year or so. Got rid of their CEO. Made an acquisition to try to diversify their assets away from battered breaded products. It is going to take some time to work its way through. Valuation is extraordinarily cheap if they get it right. The market has been concerned about declining sales. There have been inefficiencies in their operations. They also had a big product recall. It has not been a good situation. They’ve guided for organic sales growth in the 2nd half of the year, as well as organic earnings growth. Trading at 8X next year’s earnings. If things improve and operations improve, you could easily see it double.

Has been suffering in the last year or so. Got rid of their CEO. Made an acquisition to try to diversify their assets away from battered breaded products. It is going to take some time to work its way through. Valuation is extraordinarily cheap if they get it right. The market has been concerned about declining sales. There have been inefficiencies in their operations. They also had a big product recall. It has not been a good situation. They’ve guided for organic sales growth in the 2nd half of the year, as well as organic earnings growth. Trading at 8X next year’s earnings. If things improve and operations improve, you could easily see it double.

They restructured and got rid of their fleets, and went into processing fish foods. It did extremely well. There was some publicity lately and he feels it is in a bit of a struggle. Just appointed a new CEO.

They restructured and got rid of their fleets, and went into processing fish foods. It did extremely well. There was some publicity lately and he feels it is in a bit of a struggle. Just appointed a new CEO.

They were selling breaded fish as their main product and tastes are changing. In the past few months they have come out with a bunch of new products that aren’t breaded. It is the cheapest food processor in the world. The multiple does not make any sense to him. Long term, people will still be consuming more fish and seafood. They are doing a good job of paying down their debt.

They were selling breaded fish as their main product and tastes are changing. In the past few months they have come out with a bunch of new products that aren’t breaded. It is the cheapest food processor in the world. The multiple does not make any sense to him. Long term, people will still be consuming more fish and seafood. They are doing a good job of paying down their debt.

A well-managed company. It is unique, but over the last few years seafood sales in the US have struggled. It seems that when the US$ goes up, the price of seafood goes up also. Consumption per capita doesn’t seem to be going up in the US on seafood, even though it is healthier. Thinks it is going to tread water for a while. Not expensive, but quite volatile. You may want to buy when it has a bad quarter.

A well-managed company. It is unique, but over the last few years seafood sales in the US have struggled. It seems that when the US$ goes up, the price of seafood goes up also. Consumption per capita doesn’t seem to be going up in the US on seafood, even though it is healthier. Thinks it is going to tread water for a while. Not expensive, but quite volatile. You may want to buy when it has a bad quarter.

High Liner (HLF-T) or Clearwater (CLR-T)? Sold his holdings on this about 3 months ago. Both stocks have had about a 22%-25% haircut in the last 90 days. Both are free cash flow generators, 8.2% for Clearwater and 6.1% for this one. There is $55 million of free cash flow for Clearwater, about 50% more in absolute dollars than on this one. ROE is about the same. The big difference in the coming year, is on the ROE, where it is forecasted to be 21% for this company. In comparison, Clearwater appears to be better value with better growth prospects.

High Liner (HLF-T) or Clearwater (CLR-T)? Sold his holdings on this about 3 months ago. Both stocks have had about a 22%-25% haircut in the last 90 days. Both are free cash flow generators, 8.2% for Clearwater and 6.1% for this one. There is $55 million of free cash flow for Clearwater, about 50% more in absolute dollars than on this one. ROE is about the same. The big difference in the coming year, is on the ROE, where it is forecasted to be 21% for this company. In comparison, Clearwater appears to be better value with better growth prospects.

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